Capital One provided a $6.8 million adjustable-rate Freddie Mac loan to refinance Deer Valley Regency, a 96-unit apartment community in Phoenix, Arizona. Kristen Croxton and Greg Reed, Senior Vice Presidents in Capital One Multifamily’s office in Newport Beach, California, originated the transaction. 
 
The borrower, Windsor Louie, acquired Deer Valley Regency in 2008. “After discussing his investment goals, we proposed a Freddie Mac third-party capped ARM,” Reed said.  “This allowed us to provide a cash-neutral transaction, while maximizing cash flow from the property.”  The seven-year loan is structured with two years of interest-only payments.  The start rate was in the mid-2 percent range and is capped in the mid-5 percent.
 
“This transaction was my introduction to Capital One,” Louie says.  “I was impressed by their creativity in crafting a transaction that reflected my priorities.”
 
Built in 2004, Deer Valley Regency is maintained in top physical condition, and is located near major employers like American Express, Honeywell, and Discover Card.  It offers residents amenities that include covered parking, a pool and hot tub, a clubhouse, and a fitness center.  The units feature patios or balconies, washer/dryers, and walk-in closets.
 
“We were pleased to provide this loan,” Croxton says. “It combines a great asset in a growing market with strong ownership and operations.”
 
Capital One Bank’s Commercial Real Estate Group provides financing in markets nationwide, offering a comprehensive array of solutions for property owners and developers, including balance sheet and agency lending, and treasury management services.